AppearancesLisa Belden, 8453 SE 63rd Street, expressed concern that the City does not have a copy of the Sound Transit Park-and-Ride Environmental Impact Statement (EIS). She also suggested that the City Council have a Study Session so Council and citizens can comment on the EIS.

C. Morgan West, 9011 W. Shorewood Drive #1303, encouraged the Council to designate a parking spot in the Park-and-Ride lot for a Flexcar. Deputy Mayor Cairns responded that Sound Transit owns the lot and although they have not been interested in the Flexcar program in the past, he encouraged Mr. West to contact Sound Transit also.

Myra Lupton, 3443 72nd Place SE, encouraged the Council to have Mercer Island stay “attached” to the eastside rather than the westside when considering King County redistricting.

MinutesIt was moved by Councilmember Jahncke; seconded by Councilmember Litzow to:Approve the Regular Meeting Minutes of December 6, 2004 as written.The Chair put the question on the motion; Motion Passed 5-0.

Consent Calendar

Payables:

$ 2,227,236.06

Payrolls:

$ 453,739.87 (12/10/04)

$ 448,979.73 (12/23/04)

It was moved by Councilmember Jahncke; seconded by Councilmember Pearman to:Approve the Consent Calendar and the recommendations contained therein.The Chair put the question on the motion; Motion Passed 5-0.

Regular BusinessAB 3939 Actuarial Valuation – LEOFF 1 Pension Fund Finance Director Joanne Sylvis explained the actuarial study of the police and firefighters medical and pension liabilities that are facing the City in the next few years. She presented 3 funding options for consideration:

Pay as you go – each year incrementally add the necessary amount to the budget to handle the additional cost of the pensions and the medical costs

Fund the pension costs and medical costs differently.

Fund the $829,000 pension benefits from surplus cash until funded over time.

Pay as you go for the medical costs.

Determine a long term funding strategy for both the medical and pension benefits.

Council asked questions regarding the projected costs of the Firefighters’ Pension Plan and the LEOFF 1 Retiree Benefits.

Council requested that this topic be on the agenda for the annual retreat.

AB 3942 Legislative Update City Manager Rich Conrad introduced the draft of the City of Mercer Island 2005 Legislative Priorities. They include: Ambulance Utility, Municipal Court Issues, Tort Reform, City Revenue Authority, GMA Revisions and Multifamily Housing Property Tax Exemption. He briefly updated the Council on a few of the issues.

It was the consensus of the council to direct the City Manager to forward the 2005 Legislative Priorities to the 41st District legislative delegation.

AB 3940 2005-2006 Budget Amendment Finance Director Joanne Sylvis explained that the ordinance passed in December for the 2005-2006 budget was incorrect. The proposed ordinance corrects the two mistakes.

It was moved by Councilmember Jahncke; seconded by Councilmember Litzow to:Adopt Ordinance No. 05-01 replacing Ordinance No. 04-23 for adoption of the 2005-2006 Biennial Budget.The Chair put the question on the motion; Motion Passed 5-0.

AB 3943 King County Districting Committee Mayor Merkle explained that pursuant to voter initiative, King County is in the process of redrawing County Council district boundaries. Until this year, King County has been divided into 13 County Council districts. Mercer Island has been included in the 6th County Council District for many years. The voter-approved initiative requires the reduction of council districts to nine.

After Council discussion the following motion was made:

It was moved by Councilmember Pearman; seconded by Deputy Mayor Cairns to: Direct the Mayor to send a letter to the King County Districting Committee indicating the Mercer Island City Council’s support for King County Council Districts Proposal Option “A” or “B”.The Chair put the question on the motion; Motion Passed 5-0.

Councilmember Reports: Mayor Merkle re: Council retreat dates. Mayor Merkle recognized Jim Pearman as he was elected to SCA North Caucus Executive Board.

Adjournment: 9:35 pm

[Important Note: The proceedings of the City Council meeting were recorded on tape and are filed in the City Clerk's Office. The complete agenda and official minutes of this meeting are also filed in the City Clerk's office.]